TAX AND LICENSE / STATE TAX SYSTEM
State Income Tax
New Mexico imposes a tax on the net income of every resident based on net income from employment, unearned income, gambling, pensions, annuities, and income from real or personal property in this state or from businesses located in this state. Non-residents are taxed on the net income from property, employment, or business in New Mexico.
New Mexico’s personal income tax “piggybacks” on the federal return and uses the federal adjusted gross income figure as its base. Net income usually equals federal taxable income, although some special deductions are available. New Mexico uses the same dollar amounts as the federal government for personal exemptions, standard deductions, and itemized deductions. The state tax rate is based on graduated-rate. For more information or answers to your specific questions, contact:
New Mexico Tax & Revenue
505-827-0700
www.tax.newmexico.gov
Sales Tax/Gross Receipts Tax
New Mexico does not have a sales tax. It has a gross receipts tax instead. This tax is imposed on persons engaged in business in New Mexico. In almost every case, the person engaged in business passes the tax to the consumer either separately stated or as part of the selling price. Only in its effect on the buyer does the gross receipts tax resemble a sales tax. The gross receipts tax rate varies throughout the state from 5.125% to 8.8675% depending on the location of the business. Pease see the State Tax information for further details.
New Mexico Taxation & Revenue
505-827-0700
www.tax.newmexico.gov
Estate Tax
New Mexico imposes an estate tax on the net estate in an amount equal to a proportionate share of the federal credit for state estate taxes. The net estate located in New Mexico of a nonresident is also taxable as a fraction of the federal credit. New Mexico does not impose an inheritance tax on heirs but an inheritance may be reflected in a taxpayer’s modified gross income as defined by New Mexico. If so, New Mexico personal income tax laws would apply.
Property Tax
New Mexico assesses residences at market value, determining this value by the sales-comparison approach that matches a property’s value to that of similar properties. This covers rental properties as well as owner-occupied residences. Tax rates vary substantially and depend on property type and location. The formula for calculation is extremely complicated and can vary greatly. The state Property Tax Division oversees the county assessors. For specific information about your property, contact your county assessor or the state Tax Division.
Property Tax Division
New Mexico Taxation & Revenue
505-827-0700
www.tax.newmexico.gov
County Assessors
Bernalillo County
501 Tijeras NW
Albuquerque 505-222-3700
www.bernco.gov/assessor
Sandoval County
1500 Idalia Road
Bernalillo 505-867-7562
www.sandovalcountynm.gov/elected-officials/county-assessor
Torrance County
205 South Ninth Street
Estancia 505-544-4300
www.torrancecountynm.org/departments/county-assessor
Valencia County
444 Luna Avenue
Los Lunas 505-866-2065
https://www.co.valencia.nm.us/224/Assessor
